Digital savings accounts: Manage your money on-the-go

Regular savings accounts have now been replaced by a newer version of savings accounts that offers higher accessibility, more convenient banking, and more advantages. Called “digital savings accounts”, these online savings accounts help customers access all banking services 24/7, help them save more, and also offer unique features through mobile banking apps. Read on to know more about digital savings accounts in India.

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What are digital savings accounts, and how are they different from regular savings accounts?

A digital savings account can be opened, accessed, and managed completely online by the customer. These accounts offer all the features of a regular savings account with some key features and benefits. You can access a digital savings account directly through the bank’s mobile banking app or website. The following table summarises the key differences between regular and digital savings accounts:

DifferenceDigital savings accountsRegular savings accounts
Account-opening procedureThe procedure to open a digital savings account is very convenient. The account-opening procedure is completely online, and you can always access your account.To open a regular savings account, your physical presence in the bank is mandatory. You must carry your original documents (as requested by the bank) and their copies.
Debit cardDigital savings accounts are generally linked to virtual debit cards. These cards do not have a physical form, yet they can be used for various types of online transactions.A regular savings account comes with a regular debit card that has a physical form with a PIN associated with it. You must also bear yearly maintenance charges if you own such a card.
TransactionsAll online transactions made using digital savings accounts such as NEFT (national electronic funds transfer), UPI (unified payments interface) and RTGS (real-time gross settlement) payments are free of cost.Online transactions using a regular savings account are not always free. You must bear certain charges to make NEFT/RTGS transactions.
AccessibilityYou can access your digital savings account at any hour through a mobile banking app. Any issues with a banking service, too, can be resolved through the app.In most cases, if you have an issue with your regular savings account, you must visit the bank account branch in person.

Benefits of opening a digital savings account:

Here are the key benefits of opening a digital savings account:

  • Digital savings accounts help customers bank conveniently from the comfort of their homes.
  • They charge lower fees as compared to regular savings accounts.
  • Digital savings accounts generally offer higher rates of interest when compared to regular savings accounts.
  • These accounts offer higher security and accessibility to customers. Customers can access any banking service at any hour of the day through their mobile banking app.

How to open a digital savings account online?

Here are the steps that you can follow to open a digital savings account online:

  1. Download the application form and submit it online: You can sign up for a digital savings account online. As the first step, you must download the application form, fill all the required details, and submit it.
  2. Select your account variant: Next, you must select your preferred category of savings account.

 

  1. Complete video KYC and fund your account: The order of these two steps might vary depending on the bank. However, both these steps are extremely important. You must complete the video KYC procedure and fund your account to activate it.

In conclusion, digital savings accounts are online savings accounts that offer higher rates of interest, higher security, and higher accessibility to banking services.

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